If teeth of law is needed to get food retail biggies to include kirana shopwallas (local mom-and-pop stores) in their supply-chain plan, the UPA government will go ahead to make that legislation, according to minister of state for food processing Subodh Kant Sahay.
And even FDI for the country?s $330-billion retail business is okay, provided the new entrants go by the ?Indian model retail?, he said.
The department of industrial policy and promotion (DIPP) has signed up a research agency to make an in-depth impact study on the socio-economic aspects of FDI in retail. This report, crucial to make the final decision on entry of retail FDI, is due in March, the minister told FE.
One may recall that last year the Centre had announced the entry of retail FDI. This plan was rolled back after UPA chairperson Sonia Gandhi?s letter to the government calling for an impact study.
?But Walmart and others may have to stick to the Indian model of retail, if they enter Indian food retailing,? the minister said. While in European countries and the US, agriculture was only a small percent of GDP, in India, food retailing integrated to agriculture could impact the livelihoods in 70% of the country?s population.
The government was in talks with desi big retail players coaxing them to include kirana stores in their supply chain business model. Ideally, post harvesting sector should also be integrated to food retail, he said.